Turnover of RMB 574,001,000 - Up 27.3%
                  Net Profit of RMB 102,531,000 - Up 37.2%
                 Final Dividend of RMB 1.50 Cents Per Share

    SINGAPORE, May 29 /Xinhua-PRNewswire/ --

           New Revenue Stream Contributes to Strong Earnings Growth


    Financial Highlights                    For 12 months ended 31 March
                                                      (RMB'000)
                                         2006             2005        Change
                                                      (Restated)
    Turnover                        574,001          450,833          +27.3%
    Gross profit (Gross profit      163,805 (28.5%)  118,286 (26.2%)  +38.5%
     margin)
    Net profit (Net profit margin)  102,531 (17.9%)   74,720 (16.6%)  +37.2%
    Mainboard Listed Asia Dekor Holdings Limited (the "Group"; Stock Code:
A73.SI), a vertically integrated producer and distributor of laminated
floor and related products in Asia, is pleased to announce its annual
results for the year ended 31 March, 2006 ("FY2006").
    Business review & growth momentums
    The Group posted strong results for FY2006, which saw turnover rise by
27.3% to RMB 574,001,000 (FY2005: RMB 450,833,000) and profit attributable
to shareholders increase by 37.2% to RMB 102,531,000 (FY2005: RMB
74,720,000).
    Growth of the turnover during FY2006 was primarily attributed to the
strong demand for the Group's laminated flooring products and increased
contribution from its wood-panel manufacturing business. Sales of laminated
flooring products increased by 13.7% from 10.21 million sq. metres in
FY2005 to 11.61 million sq. metres during the Period, while sales of
wood-panel products to external customers increased significantly by from
4,700 cubic metres in FY2005 to 59,000 cubic metres during FY2006.
    During FY2006, gross profit increased significantly by 38.5% to RMB
163,805,000 as compared to RMB 118,286,000 in FY2005, while gross profit
margin improved to 28.5% from 26.2% in FY2005. This was primarily due to
lower material cost of High Density Fibreboard ("HDF") by the successful
implementation of the Group's strategy of shifting from European imports to
self-supply from the Heyuan factory.
    Given the strong financial performance, the Group is pleased to
announce the recommendation of a final dividend of RMB 1.50 cents per share
for FY2006.
    New Production Facility
    In January 2006, the Group successfully completed its particleboard
production plant in Huizhou, Guangdong Province, China. With a total
investment of approximately US$30 million, the new plant is an advanced and
one of the largest production facilities of particleboards in China. With a
designed annual capacity of 200,000 cubic metres, the plant was built over
15 months using German technology. The particleboard facility is
strategically located in Huizhou, Guangdong, which is known as China's
largest furniture production region, with Dongguan and Shenzhen being the
leading markets.
    The Huizhou factory has just begun commercial production of
particleboards in March 2006. The Group expects that, with the increasing
demand of particleboards in the markets of Shenzhen and Dongguan, the
Huizhou factory would contribute positively to the Group's profitability in
the current financial year.
    Share Placement
    On 31 March 2006, the Group announced a placement of a total of
50,000,000 new ordinary shares of HK$0.15 each in the share capital of the
company at S$0.1425 for each placement share. The net proceeds from the
placement amounting to approximately S$6,900,000 will be used for the
reduction of a long term bank loan which was drawn down for financing the
construction of the Heyuan factory.
    Outlook
    The Group expects that the current financial year will remain
challenging as the business environment and market conditions would
continue to be competitive in China. However, the Group remains confident
as it is well positioned in the region in terms of product branding,
factory locations and technological capability. The Group will focus
towards integrating and streamlining its existing and new manufacturing
facilities, improving product quality, strengthening financial management,
enhancing marketing capability and increasing overall operational
efficiency to pursue future growth. The Group will also launch more
products with innovative features to the market in the current financial
year in order to be in line with the market demand.
    Company Background
    Asia Dekor Holdings Limited was established in 1994 and listed on the
Singapore Stock Exchange in November 1999. A leader in its industry, Asia
Dekor is fully vertically integrated in the design, manufacture and sales
and distribution of laminated wood flooring, particleboards and related
panel products. With the completion of the new particleboard factory in
2006, the Group now has three production facilities in China, located in
Shenzhen, Heyuan and Huizhou, with an annual production capacity of 16
million sq. metres laminated flooring products, 200,000 cubic metres
fibreboards, and 200,000 cubic metres particleboards, respectively. Asia
Dekor, through a joint venture, has a well-established distribution network
with over 1,500 exclusive distribution outlets throughout China. "Power
Dekor", the flagship product of Asia Dekor, is the most recognized brand
name in China's wood flooring market.
    For further information, please contact:

    Asia Dekor Holdings Limited
     Mr. Max Chan, Company Secretary
     c/o Dream Touch Financial Services Limited

    Dream Touch Financial Services Limited
     Fax: +852-2155-9165

     Ms. Nancy Chen
     Tel:   +852-3183-0228
     Email: NancyChen@DreamTouchltd.com

     Mr. Jonathan Kiu
     Tel:   +852-3183-0225
     Email: JonathanKiu@DreamTouchltd.com

Link to this page: